Base Knowledge
Financial Analysis
Financial Management
Teaching Methodologies
Teaching will be theoretical and practical in nature.
First with the use of concepts and techniques and then with the adoption of practical cases.
The elaboration of an Investment Project using a previously elaborated spreadsheet is still detailed throughout the semester.
Learning Results
The objective of this course is to enable the student to prepare and analyze an investment project; provide students with theoretical and practical knowledge of the base methodologies for analyzing the economic and financial feasibility of investment projects under conditions of certainty and uncertainty. Analysis of the Investment Financing Problem. Analysis of the risk associated with an investment project. The sustainability of projects and social projects.
The skills to be acquired:
At the end of the semester students should be able to:
– Use the necessary technical and instrumental skills in the economic and financial analysis of investments.
– Use technical skills capable of proposing investment financing solutions.
– Analyze and assess the risk level of investment.
– Support the decision-making of Real Investments in companies.
Program
English version
I. INTRODUCTION
Preparation phases of an investment project
Necessary information
Types of Projects
II. BASIC CONCEPTS
The incremental character of the investment project
The notion of sunk costs
The notion of opportunity cost of invested capital
CAPM and cost of capital: Levered and unlevered beta. Typology of capital costs.
Duration of investment in project analysis.
The “residual value” of the investment project
Project cash flow meanings
III. PROJECT EVALUATION AND SELECTION CRITERIA
The Net Present Value (NPV)
The Internal Rate of Return (IRR)
The Profitability Index of a Project (IRP)
The Investment Payback Period (PRI)
Internal Integrated Return Rate (TIRI)
Capital rationing and project selection
Annuity criteria and the method of cycles
Inversion of the TIR criterion, multiple TIR’s and no TIR.
Fisher’s criterion.
IV. INTERACTION OF INVESTMENT AND FINANCING DECISIONS
The tax effect of indebtedness
VALA criterion
V. UNCERTAINTY REDUCTION TECHNIQUES AND RISK TREATMENT IN PROJECT ANALYSIS
Sensitivity Analysis
Scenario Analysis
Break-Even Analysis
Decision Trees
VI. THE CONSIDERATION OF STRATEGIC OPTIONS IN INVESTMENT EVALUATION
VII. SOCIAL ANALYSIS OF INVESTMENT PROJECTS
Curricular Unit Teachers
Internship(s)
NAO
Bibliography
Main:
Cebola, A., (2017). Projetos de Investimento de Pequenas e Médias Empresas: Elaboração e Análise, Lisboa,2ª edição, Ed. Sílabo.
Couto G., Lopes MM, Sousa F., Pimentel P, & Crispim J. (2014). Avaliação de investimentos, 2ª edição/reimpressão, Áreas Editora.
Esperança, J. Paulo & Carlos D. (2014). Empreendedorismo e Planeamento Financeiro-Transformar oportunidades em negócios. Criar micro, pequenas e médias empresas, 2ª edição/reimpressão, edições Sílabo.
Hopkinson, M. (2017). The project risk maturity model: Measuring and improving risk management capability. Routledge
Kurowski, L., & Sussman, D. (2011). Investment Project Design: a guide to financial and economic analysis with constraints (Vol. 632). John Wiley & Sons.
Soares, I. Moreira, J.; Pinho, C. & Couto, J. (2015). Decisões de Investimento – Análise Financeira de Projectos, Edição/reimpressão. Edições Sílabo (4ª edição, revista e corrigida
Additional:
-Bodie Z., Kane, A. and Marcus A. (2012). Essentials of Investments, McGraw Hill, 9th Edition
-Brealey, R. A.; Myers, S. C. and Alen, F. (2011). Principles of corporate Finance, McGraw Hill, 10º edition.
-Damodaran, A, (2012). Investment Valuation: Tools and Techniques for Determining the Value of any Asset, University Edition.
-Esperança, J. P. e F. Matias, (2010). Finanças Empresariais, Texto Editores.
-Ferreira, M.; Mota, A. G.; Nunes, J. P. e Clementina, B. (2015). Finanças da Empresa – Teoria e Prática,5ª edição, Edições Silabo.
-Koller, T.; Goedhart, M. and David, W. (2010). Valuation: Measuring and Managing the Value of Companies, University Edition, 5th Edition, McKinsey & Company Inc.
–Lawrence Revsine; Daniel Collins; Bruce Johnson; Fred Mittelstaedt and Leonard Soffer (2018), Financial Reporting and Analysis 7th Edition, McGraw-Hill.
-Neves, J. C. (2011). Avaliação e Gestão da Performance Estratégica da Empresa, 2ª Edição, Texto Editores.
-Neves, J. C. (2012). Análise e Relato Financeiro-uma visão integrada de gestão, 5ª Edição, Texto Editores.
– Robert, H. (2018). Analysis for Financial Management. 12th Edition, Macgraw-Hill
-Ross, S.; Westerfield R. and Jaffe, J. (2016). Essentials of Corporate Finance, McGraw-Hill Education, 9ª edition.
-Silva, E. (2014). Decisões de Financiamento-aspetos práticos, Vida económica.
– Willem, S., Dirk, S., (2019). Principles Of Sustainable Finance, Edição: Oxford University Press
Other sites :
– Bplans: www.bplans.com IAPMEI: http://www.iapmei.pt